RSX Market Vectors-Russia ETF

On April 10, 2007, Van Eck Global, a New York based Investment manager declared effective the prospectus for the Market Vectors-Russia ETF. The ETF is a U.S. exchange-traded fund that will invest in Russian securities. The fund is expected to be launched on the New York stock exchange later in 2007's second quarter.  Options are expected to be available on both ETFs.  Market Vectors-Russia (NYSE: RSX) will be the first Russia ETF to be listed on a United States exchange.  the ETF will seek to replicate, before fees and expenses the performance of the DAXglobal (R) Russia+ Index (DXRPUSP).  This is an index maintained by Deutsche Borse AG and is made up of 30 globally traded Russian companies.

RSX will allow investors to participate in Russia's emerging market as RSX will be the first ETF to focus specifically on Russia.  The Russian economy has grown by 6% in 2006, boosted by high energy prices and a jump in consumer spending.   Yet despite recent attention from foreign investors Russian stocks are not  pricey.  RSX however, will be subject to the highly volatile behavior of an emerging market.  Falling commodity prices, especially oils and metals have spurred investors to reduce their global risk exposure.  This has put heavy selling pressure on Russia among other emerging markets, because of their commodity driven economy.  Insiders remain optimistic, this market sell-off they explain, is replicating the five previous corrections since 2003. 
Timing and active management will be necessary for successful investment into the emerging markets, without it one's investment will follow the serious drawdowns these markets are susceptible to, due to their heavy reliance on commodities.  But Russia is not just an emerging market, it's an emerging securities market as well.  The regulatory environment may not allow for easy trading and it would be difficult to short stocks in the new jurisdiction.  The real value of RSX and emerging market focused ETFs in general would be the combination of stock selection on the buy side (bottom up analysis) and the shorting of ETFs (top down analysis) which would be available to the global investor.

The new Russian ETF is in line with Van Eck's profile as a money manager.  When it began in 1955 Van Eck had a goal of helping investors achieve greater diversification through global investments.  As of 2007 the company manages over $4.8 billion in assets for private and institutional investors.  The firm offers investment choices in hard assets, emerging markets and other specialized asset classes.  The investment products are designed for investors seeking innovation to diversify their portfolio.  The products are categorized by asset classes and have returns with low correlations to those of more standard U.S. equity and fixed income investments.

This transaction service provider offers a market for trading securities.   The advanced technology of Deutsche Borse gives  investors access to global capital markets. 

This is a registered trademark of the Deutsche Borse AG that is licensed for use by Van Eck Associates Corporation in connection with the Fund.